SIE practice questionmediumTreasury Securities
Which U.S. Treasury security is issued at a discount and does not pay periodic interest, but matures at face value?
- ATreasury note
- BTreasury bill✓ Correct answer
- CTreasury bond
- DTreasury Inflation-Protected Security (TIPS)
Explanation
Why B — Treasury bill
Treasury bills (T-bills) are sold at a discount and mature at face value, paying no interim interest. Treasury notes and bonds pay semiannual interest. TIPS pay interest and adjust principal for inflation—unlike zero-coupon T-bills.
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